GBP/USD Plummets to 10 Month Low – Update

Daily Fundamentals:

The Pound plummeted Monday on political, economic and monetary policy concerns, pushing the currency to its lowest levels in more than 10 months against the Dollar and other currencies.

Increased bearish sentiment comes as opinion polls showed UK may elect its first minority government with a shrinking lead for the conservative party. This may lead to difficulty in pushing reforms needed — and impede efforts to cut the nation’s record deficit.

Weakness pushed with ease below the 1.5000 level, breaking below a key Fibonacci level at 1.4955 to reach a current 1.4784 low. Bearishness should resume with rallies likely met by selling pressure. Resistance is now seen at 1.4937 and 1.4984.

Trend:

Weekly : Bearish
Daily: Bearish
Hourly: Bearish

Support & Resistance:

From current levels, 1.4885, the pair finds initial resistance at 1.937, followed by 1.4984, and 1.5031.

Key support to watch is the 1.4848 where a break of such would open targets to the 1.4784 level, followed by 1.4700 and 1.4650.

Strategy:

Order reversed slightly before entry and retraced over 20 points. New entry has been established. If anybody entered move stop to break even.

(New) – Limit Sell  @ 1.5080 Targets: T1 1.5000 – T2 1.4670 Risk 1.5140
* After 20 pips profit move stop to entry, take profit at will. Comments will follow if outlook changes.

(Old) Limit Sell  @ 1.4984 Targets: T1 1.4954 – T2 1.4670 Risk 1.5050
* After 20 pips profit move stop to entry, take profit at will. Comments will follow if outlook changes.

DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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